Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-04-12
THE INTERSTATE COMMERCE. DEBATE
STATE AND CITY"

THE INTERSTATE COMMERCE DEBATE
=" STATE AND CITY"
The San Francisco Chronicle again begs
the question. Its insistance that an effort
IS being made to place it in a false posi-
ton is disingenious. Its attitude is due to
its lack Of discernment, which led it to
commit itself to most absurd PROPOSE
ton, to wit: that deprivation of the in
terror trade-centers of competitive ad-
vantages for importing by rail, is really
beneficial to them.
That order of argument may satisfy the
Chronicle; it will have no effect whatever
with the consumers in the interior. No
sort of reasoning" it may adopt viii con-
vince the merchants of the valleys that
any policy which forces them to buy in an
exclusive market is to their advantage
The Chronicles argument has led it into a
dilemma, from which it struggles to es-
cape. Concerning one thing, let it be
honest enough to accord this journal JUS
tice-it has not misrepresented the G2rOni-
Gle, nor endeavoref to present it in any
other attitude ii an that it actually as
sumed.
The Chronicles original position amount
ed to this, when stripped of its verbiage:
"The law will drive the most of the
through carrying trade to water routes
The rates by these lines are not deter
mined by rail competition, but by the COM
petition between water carriers themselves.
San Francisco will thus be assured of low
rates by water on great number of i'm
ports, and will thereby be enabled to sup
ply the interior cheaper than it can i'm
port by rail under the law Therefore the
law is to the advantage of San Francisco
and the interior"
In reply it was pointed out that the
statement of non-competition between
ship and car was false that low through
rates-as common knowledge affirms-were
due to competition between the two classes
of carriers. That water routes would, on
the cessation of that competition, advance
their tarifs-as they have. That the ina
bility of the trade centers of the interior
to import by rail at through rates must re-
suit in advance of prices upon nearly all
import commodities- That it follows in
evitably that the consumers of the interior
must suffer, the advance being as a matter
of course, visited by dealers upon them,
while it must certainly follow that bust
ness heretofore Independent, will become
dependent upon the metropolis.
The Chronicle insists that all it has
claimed is, that freight rates between San
Francisco and the interior are too high
This is the old story. OF course, if the
interior could transport its freight from
the metropolis for nothing, San Francisco
would be more than gratifed; it is to its
interest to maintain that any new burdens
upon interior trade are solely chargeable
to the railroad companies. But, in truth,
local or State rates remain ms heretofore;
there is not, and probably will not be, any
change in them No one has heard of
even a suggestion of advance in local rates
but if the transcontinental traffic is
stripped from the Pacific railroads, it must
be clear, to even so dull intelligence as that
eyinced by the Chronicle, that interior in
dustries heretofore largely dependent upon
the ability of the Pacific roads to compete
with ocean traffic, viii be crippled. That
is business logic that is unanswerable.
The through competitive business of the
several railroads, as we understand the
matter, has been maintained not because
of direct returns from it, but in order that
the business of the country generally
should be fostered, and the interior as
well as the metropolis be developed and
built up, and with prospective increase of
general carrying business.
We have never, we trust, been guilty of
such narrow-mindedness as to hold that
San Francisco is not the chief metropolis
of the State and the coast, or that her in
terests are not knit with those of the inte-
rior, nor that aggregation and investment
of capital there in manufactures and
trade can be otherwise than beneficial.
What we have maintained is, that San
Franciseo's commercial prosperity can be
advanced by policy on her part calcu-
lated to encourage and develop the inte-
rior, and that it Is checked by any policy
that is exclusive, absorbent and illiberal.
Affirming that the earliest benefit of
the interstate commerce law viii be ade-
rived by San Francisco, it projects these
inquiries,into the debate;
Suppose that the railroad company raises its
through rates 50 high as to amount, On GER |
tam article. TO complete prohibition VI lis I'M
port by rail What is the consequence Une |
of two things must fellow. Ii is OF such char |
aeter that it can be manufactured here, and /
there Is demand for it, it Will be manufact |
ured. If it is not capable OF being manufact-
cheaper conveyance than rail. How would this /
afiecT the interior Does that question need an |
answer II wholesale merchant in this city |
pays bat one-hsif cent freight where he has |
previously paid two cents. does not his customer I
IN the interior g. the benefit Of the reduction
Or IL the needed Article is manufactured here,
il viii be because 1t can be made cheaper than
il caA be imported and VIII not the consumer
set the advantage of the difference in first cost
The driving out of competitor has
never get had the effect to cheaper rates
upon the remaining avenue of carriage
In fact, it has had directly the opposite
result in the present case-steamer rates
have been advanced, and San Francisco
Others Lave flooded the interior with
notices" that, while they regret il,
hey are compelled to give their customers